The chief economic adviser (CEA) in the finance ministry, Arvind Subramanian will likely get an extension once his three-year term expires in October, official sources told FE, scotching rumours of his resignation.
The chief economic adviser (CEA) in the finance ministry, Arvind Subramanian will likely get an extension once his three-year term expires in October, official sources told FE, scotching rumours of his resignation. “The Prime Minister’s Office and the finance ministry are seized of the matter. Indications are that the matter of his extension is being favourably considered,” said one of the sources. However, clarity on the tenure of his extension will emerge once such an order is issued, following the approval of the PMO, he added. The CEA wasn’t available for a comment.
Subramanian is on leave from the US-based Peterson Institute for International Economics, where he’s a senior fellow.
Speculation about his likely exit started gathering pace after then NITI Aayog vice-chairman Arvind Panagariya resigned last month, with the think tank’s new vice-chairman Rajiv Kumar hinting the days of foreign-trained economists driving policies in India were numbered. In a column published in Dainik Jagran before he started his tenure at NITI Aayog, Kumar referred to the exit of Panagariya and former RBI governor Raghuram Rajan and wrote that “if Lutyens’ Delhi rumours are to be believed, more such resignations can come”. bThe CEA’s current term is ending at a critical time for the economy when the government is considering more measures to stimulate growth, which has hit a three-year low.
The PMO has asked the finance ministry to hold discussions with key ministries and stitch together a comprehensive presentation on ways to create jobs and boost growth. Finance minister Arun Jaitley has already held a series of meetings with some of his ministerial colleagues for this purpose. The CEA has been a part of these meetings.